Alibaba's (NYSE: BABA) stock tumbled 11% on Nov. 18 after the Chinese e-commerce and cloud leader posted its second-quarter earnings report. Its revenue rose 29% year-over-year to 200.7 billion yuan ($31.1 billion), which missed estimates by 4.3 billion yuan ($673 million). Excluding its consolidation of the hypermarket operator Sun Art, its revenue would only have risen 16%.
Its adjusted earnings fell 38% to 11.20 yuan ($1.74) per ADS, which also missed expectations by 1.24 yuan ($0.19). On a generally accepted accounting principles (GAAP) basis, which included a lot of investment-related losses, its adjusted earnings plunged 81% to 1.97 yuan ($0.31) per ADS.
Those headline numbers were ugly, but did investors overreact and create a buying opportunity for more patient investors?
Source Fool.com